SpaceX Vaults Past Amazon's Market Value as Options Listing Fuels Surge

SpaceX (SPCX) roared past Amazon's (AMZN’s) market valuation on Tuesday and briefly topped that of Microsoft (MSFT), rapidly scaling the list of the world's most valuable companies on a topsy-turvy trading day fuelled by frenzied action in the firm's newly listed options contracts.

SpaceX shares rose 4.8% to close at $201.80, giving Elon Musk's company a market value of approximately $2.655 trillion — some $800 billion more than its value when it sold its record initial public offering last week and about $10 billion more than that of Amazon, until Tuesday the fifth-largest US-listed firm by market value.

Market Value Rankings

The chart below shows SpaceX's position among the world's most valuable companies:

- Nvidia: Over $5 trillion

- Alphabet: Over $4.5 trillion

- Apple: Over $4.4 trillion

- Microsoft: Approximately $2.92 trillion

- SpaceX: $2.655 trillion

- Amazon.com: $2.646 trillion

- Meta Platforms: Approximately $1.5 trillion

- Tesla: Approximately $1.5 trillion

Options Trading Drives Gains

A big driver of Tuesday's gains was the launch of options in SpaceX stock, which confer the right, though not the obligation, to buy or sell shares at a certain price by a stated date. More than 500 000 SpaceX options contracts changed hands within the first hour of trading and more than 1 million by early afternoon, according to Trade Alert data.

A surge in options volume can at times cause an underlying stock to swing as options dealers, who facilitate trading by taking the other side of options trades, buy and sell shares to square their own risk. "If you're a market maker, you can't hedge SpaceX with anything else other than SpaceX," said Brent Kochuba, founder of options analytics service SpotGamma.

Trading Volume and Volatility

Trading volume in SpaceX shares was enormous, with turnover in the rocket company's shares — reflecting the approximate dollar value of the day's trades — the highest among large US-listed firms at $61 billion.

The latest gains in SpaceX shares came on a day when technology stocks were otherwise slipping, with the semiconductor index down 3% and the Nasdaq Composite off 0.5%.

"It's a $2.5 trillion company, but it certainly feels like one of those meme stocks, the way it's trading," said Joe Saluzzi, co-head of equity trading at Themis Trading. "We've seen momentum in the past; they just tend to run and you have to be very, very careful with these types of names."

Company Fundamentals

The company reported sales of $18.67 billion last year and a net loss of $4.94 billion after merging with money-losing xAI, in contrast to many of Wall Street's big technology companies that have posted bumper profits.

Index Inclusion and Future Demand

The rally could continue, analysts said, as SpaceX is set for fast-track inclusion in the Nasdaq 100, which will soon make it a major holding for passive funds and ETFs that track the index, creating a fresh source of demand for its shares. FTSE Russell and MSCI are also set to add the stock to their indexes effective 26 June and 29 June, respectively.

SpaceX also said on Monday that its underwriters had exercised the "greenshoe" option to purchase additional shares, increasing the total proceeds from its initial public offering (IPO) to $85.7 billion from the $75 billion it raised last week.

Market Sentiment: 

The sentiment is cautiously optimistic with a strong speculative undercurrent. SpaceX's rapid ascent to a $2.655 trillion market cap — briefly surpassing Microsoft — is remarkable for a company that reported a net loss of $4.94 billion last year. The options trading frenzy, with over 1 million contracts changing hands on the first day, has introduced significant volatility and forced market makers to hedge with the underlying stock, creating a feedback loop that amplified the rally. The $61 billion in daily trading volume — the highest among large US-listed firms — underscores the speculative intensity. The stock's meme-like behaviour (as noted by Themis Trading's Saluzzi) suggests retail and momentum traders are driving much of the action, creating risk of sharp reversals. Index inclusion (Nasdaq 100, FTSE Russell, MSCI) will provide a floor of passive demand, but the high valuation relative to fundamentals makes this a high-risk, high-reward play. For the broader market, SpaceX's surge comes amid weakness in traditional tech sectors, reflecting a rotation of speculative capital into the most high-profile AI and space names. Rising gasoline prices and inflation concerns could pressure broader tech valuations, but SpaceX's narrative — rockets, AI, and Musk's empire — appears insulated. The options market's ability to sustain this momentum will determine whether SpaceX holds its position among the trillion-dollar club or experiences a sharp correction. For investors, the advice is caution: the fundamentals do not justify the valuation, but the market is pricing in future potential rather than current earnings. The next catalysts are the formal index inclusion dates and any announcements from Musk about SpaceX's AI or space ambitions. The history of highly anticipated IPOs suggests that initial euphoria often gives way to more rational pricing, but the timing and depth of any correction are uncertain. SpaceX is now a major force in global markets, and its trajectory will be closely watched as a barometer of AI and space sector sentiment. The gap between its valuation and those of profitable tech giants like Apple and Alphabet ($4 trillion+) leaves room for further upside if the narrative holds, but also significant downside if sentiment shifts.

Disclaimer:
This content has been generated using AI technology and is intended for informational purposes only. While efforts have been made to ensure accuracy and relevance, this text should not be considered professional advice or an official statement. Always verify information from authoritative sources before making any decisions. This is not financial advice.